Korean shipping stocks rallied across the board as tensions surrounding the Strait of Hormuz persist despite Middle East ceasefire negotiations. Korea Line's stock hit the daily upper limit as expectations for rising maritime freight rates intensified.
Korea Line (005880.KS) closed at 3,090 won on the regular trading session on January 10, up 29.83% from the previous day to hit the upper limit, according to the Korea Exchange on January 11. Other major shipping stocks also posted gains, including KSS Line (10.39%), Heung-A Shipping (4.95%), STX Greenlogi (6.71%), HMM (4.08%), and Pan Ocean (3.08%).
Market observers attribute the stock rally to expectations of rising freight rates amid prolonged transit disruptions through the Strait of Hormuz, a critical chokepoint in the Middle East. Despite a ceasefire agreement between the United States and Iran, passage through the strait has not normalized.
According to an analysis by British broadcaster BBC citing maritime data firm MarineTraffic, the number of vessels passing through the strait plummeted from a daily average of 138 to just 11 following the ceasefire. Most ships that did pass were limited to Iran-related vessels, effectively maintaining a blockade, analysts said. Maritime risks remain elevated as warnings of potential attacks on unauthorized crossings continue.
Adding to shipping companies' burden is the controversy over transit fees. With estimates suggesting tolls could reach up to $2 million for large tankers, the potential for both operational disruptions and increased freight rate pressure is growing.
